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"A person buys a camera once every few years, so the only recurrent revenues are from the output stream," said Edward Y . Lee a photography analyst at Lyra Research.
Tentpole franchises like FIFA, Hearthstone and GTA V Online have made a mint from what they call "recurrent revenues".
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"It builds a recurrent revenue stream over time and encourages our customers to make Audible programming a daily part of their lives".
In our view, there remains good trading upside to Mouchel and we note an average exit multiple of consulting businesses (PE of 13.1 times) would imply an exit price of 170p, but this still places little value on the recurrent revenue profile of Mouchel's outsourcing activity and is based on cyclically low forecasts.
It also comes with $15 single-use cartridges, which [creates] a recurrent revenue stream.
The stable, recurrent revenue that the subscription model provides will keep the finance side of the house happy and put a smile on investors' faces.
"We're on track to do about $10 million in recurrent revenue and have customers now that pay the company half a million dollars a year to run their storage systems.
"Done well, infrastructure spending is not inconsistent with establishing a better balance between recurrent spending and revenue," Lowe said in Melbourne last week.
The RBA governor said the government needed to achieve a better balance between recurrent spending and revenue, but infrastructure spending, when backed by a solid business case, "can provide support for the economy and can help generate the productive assets that a prosperous economy needs".
*Others mainly refers to donation revenue, recurrent expenses of medical-aid, and health administration fees.
Since the budget package draws on borrowed money and one-shot revenue raises, it does not significantly reduce the recurrent imbalance between steady revenue and state spending.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com